Loss on Disposal of Assets

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Loss on Disposal of Assets

Loss on Disposal of Assets

During the twelve months ended December 31, 2019, the Company recorded $17.4 million in loss on disposal of assets in the statement of operations. This loss on disposal of assets consists of $13.4 million related to the disposal of excess and obsolete inventory, $3.1 million related to the write-down of certain held-for-sale assets to fair value less cost to sell and $2.4 million related to the write-off of certain unrecoverable costs previously capitalized with a project to upgrade the Company's enterprise accounting software. This project was suspended in the third quarter of 2019 and the Company has elected to re-evaluate and pursue an alternative solution. Refer to Note 19, Fair Value Measurements for information regarding the Company's held-for-sale assets. These losses on disposal were partially offset by a $1.5 million gain on sale-leaseback transactions for 6 aircraft delivered during the twelve months ended December 31, 2019. Refer to Note 14, Leases and Prepaid Maintenance Deposits for information regarding the Company's accounting policy on sale-leaseback transactions.

During the twelve months ended December 31, 2018, the Company recorded $9.6 million in loss on disposal of assets in the statement of operations. During the twelve months ended December 31, 2018, the Company sold 6 used engines for $11.4 million at a loss of $5.2 million. In addition, the Company wrote off $4.4 million related to the disposal of excess and obsolete inventory.

During the twelve months ended December 31, 2017, the Company recorded $4.2 million in loss on disposal of assets in the statement of operations. This loss on disposal of assets primarily consists of the disposal of excess and obsolete inventory.